Animal Spirits Podcast Can the Markets Cause a Recession (EP.249)
Mar 23, 2022
This discussion digs into wild interest rate fluctuations and soaring mortgage costs. The U.S. consumer's spending habits persist despite inflation. A critical look at the troubled housing market reveals stark wealth disparities among generations. Funny anecdotes from coaching young kids in sports lighten the mood. The hosts also share personal investment reflections and opinions on film nostalgia while predicting Oscar winners. The podcast artfully blends finance insights with entertaining personal stories.
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Bond Market Dynamics
- Interest rates are becoming more interesting than the stock market.
- The bond market is getting more interesting now due to crazy moves in interest rates.
Mortgage Rate Repricing
- Mortgage rates are repricing much faster than other rates.
- This rapid repricing in the housing market may have unexpected consequences.
Bond Investment Strategy
- Consider owning short-to-intermediate-term bonds in a rising rate environment.
- Short-term bonds offer similar yields with less volatility compared to long-term bonds.